REVENUE

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

REVENUE

18. REVENUE

In the following table, revenue is disaggregated by performance obligation and timing of revenue recognition. All revenue comes from contracts with customers. Refer to Note 19 for the disaggregation of revenue by geographic region.

	For the Year Ended December 31,
	2023		2022		2021
Product		158,405		147,448		129,031
Transportation		17,674		18,030		13,231
License fees from Construction Partners		840		778		738
Total product revenue		176,919		166,256		143,000
Installation and other services		5,012		5,905		4,593
		181,931		172,161		147,593

DIRTT sells its products and services pursuant to fixed-price contracts which generally have a term of one year or less. The transaction price used in determining the amount of revenue to recognize from fixed-price contracts is based upon agreed contractual terms with each customer and is not subject to variability.

	For the Year Ended December 31,
	2023		2022		2021
At a point in time		176,079		165,478		142,262
Over time		5,852		6,683		5,331
		181,931		172,161		147,593

Revenue recognized at a point in time represents the majority of the Company’s sales. Revenue is recognized when a customer obtains legal title to the product, which is when ownership of the product is transferred to, or services are delivered to, the customer. Revenue recognized over time is limited to installation and ongoing maintenance contracts with customers and is recorded as performance obligations are satisfied over the term of the contract.

Contract Liabilities

	As at December 31,
	2023		2022		2021
Customer deposits		5,290		4,458		1,959
Deferred revenue		-		408		461
Contract liabilities		5,290		4,866		2,420

Contract liabilities primarily relate to deposits received from customers and maintenance revenue from license subscriptions. The balance of contract liabilities was higher as at December 31, 2023, compared to the prior year period mainly due to the timing of orders and payments. Contract liabilities as at December 31, 2022 and 2021, respectively, totaling $4.9 million and $2.4 million were recognized as revenue during 2023 and 2022, respectively.

Sales by Industry

The Company periodically reviews product revenue by industry vertical market to evaluate trends and the success of industry specific sales initiatives. The nature of products sold to the various industries is consistent and therefore the periodic review is focused on sales performance.

	For the Year Ended December 31,
	2023		2022		2021
Commercial		116,693		115,102		84,488
Healthcare		33,970		19,739		30,130
Government		13,446		16,564		16,012
Education		11,970		14,073		11,632
License fees from Construction Partners		840		778		738
Total product and transportation revenue		176,919		166,256		143,000
Installation and other services		5,012		5,905		4,593
		181,931		172,161		147,593